[amp_mcq option1=”automatic route” option2=”government route” option3=”Both A and B” option4=”None of these” correct=”option1″]
FDI upto 49% in private banking sector of India is allowed through automatic route.
The automatic route is a simplified procedure for foreign direct investment (FDI) in India. Under this route, FDI up to 100% is allowed in most sectors without prior approval from the government. However, there are some sectors where FDI is allowed only up to a certain limit, and in these cases, prior approval from the government is required.
The private banking sector is one of the sectors where FDI is allowed up to 49% under the automatic route. This means that foreign investors can invest up to 49% in a private bank in India without having to obtain prior approval from the government.
The government route is a more complex procedure for FDI in India. Under this route, FDI is allowed in all sectors, but prior approval from the government is required. The government route is usually used for large investments or for investments in sensitive sectors.
In conclusion, FDI upto 49% in private banking sector of India is allowed through automatic route. This means that foreign investors can invest up to 49% in a private bank in India without having to obtain prior approval from the government.